A new Louisville Metro Council committee will take a scalpel to Mayor Greg Fischer's spending habits to find savings as leaders look to patch a projected $35 million budget hole.

The ad hoc "efficiency" committee, which is expected to be formally created Thursday, will be led by Councilman David Yates, D-25th District, as chair, and Councilman Anthony Piagentini, R-25th, as vice-chair — both of whom have said they want to find some cuts to spending rather than rely solely on raising Louisville's insurance tax.

Council President David James, who is establishing the committee, said the idea was spurred by the upcoming budget shortfall but that its work will likely continue beyond any vote on Fischer’s tax hike.

“You always want to try to make government as efficient as possible. The crisis that we’re facing gives us the opportunity to really look deep at everything and causes us to reevaluate what we spend taxpayer dollars on and how we operate government,” James told the Courier Journal.

Fischer's proposal would triple insurance premium taxes over four years and carries a strict deadline of March 21 to be passed, in time for it to go into effect on July 1. Many council members, including Democrats like James sponsoring Fischer's ordinance, say budget cuts must accompany any tax hike.

The new committee will search for areas in the city budget where government could run more efficiently and save taxpayers money, James said. And the committee's work could continue beyond the tax hike vote, into upcoming budget discussions.

"What we need to do is pressure test every aspect of running the city's government. We haven't had an opportunity to do this since probably the Great Recession," Piagentini said. "We need an honest gut check: Are we doing everything we can to run efficiently?"

Fischer threw out an "either-or" scenario when he started talking about the need for new revenue: either give him the insurance premium tax hike, or the city would face "devastating" budget cuts to city services including public safety.

He's blamed Frankfort for the rising pension costs that he says led to the budget shortfall, and for the limited range of options to raise revenue.

But now, council members, many of whom resent his strategy in rolling out his proposal, are pushing to take a closer look at the mayor's own spending.

The state pension-driven budget challenge could impact our @loukyparks team, reducing our staff and closing facilities. A growing, strong city does more of these things, not less. That's why I'm working with the Council on the revenue plan.

James said any ideas the committee can develop in the tight time frame before the March 21 deadline to vote on the tax hike would help inform the council’s decision about what the rate of increase would be and what the dollar amount of cuts may be.

Yates, too, said the immediate responsibility of the committee would be to find alternative options to present to council members considering the tax increase. With the help of nonpartisan experts, Yates hopes to identify “where we can cut fat, where there are redundancies, where there’s waste.”

“I’m hoping, with the right experts, they’ll remove the politics of it, so we can get back into the nuts and bolts and address it like a business,” Yates said.

Under Fischer's tax proposal, the insurance premium tax would go from 5 percent to 12.5 percent in the upcoming budget and the next. It would go up again to 13.5 percent in fiscal year 2022 and finally to 15 percent by fiscal year 2023.

Daniel Frockt, Louisville’s chief financial officer, estimates it would increase the average Louisville family’s home insurance by $12 to $13 per month by the time the tax hike is fully enacted. That’s based on a $1,500 premium for a house worth anywhere from $125,000 to $300,000.

"I'm showing what I think is best for the community, based on what people tell me ... and based on who we aspire to compete against," Fischer said Friday in a sit-down interview with the Courier Journal. "... If the council has a counter proposal, we'll certainly take a look at that."

Metro Council Democrats, who hold a veto-proof majority, have yet to release concrete proposals for any other sources of new revenue or budget reductions they accept. Last week in a caucus meeting, members said they’d be creating a “solution room” to brainstorm ideas.

Republicans, meanwhile, have publicly shared some ideas for cuts they say are being discussed: suspending cost of living raises, asking employees to pay an increase in health insurance costs and using some of Fischer’s proposed budget cuts.

Piagentini, who is among eight freshmen on the council, said he’s ready to challenge the status quo of administration spending and to think outside the box.

“I don’t care where you live in the city or what your socioeconomic status is — people are absolutely against this tax increase,” he said. “And they want to see the results of a committee just like this, that will get creative and represent taxpayers.”